Osagyefo Barge to generates power in three months

Accra, July 27, GNA - The 125 megawatts Osagyefo Barge is to be converted into a combined cycle power plant and made to generate power in the next three months following a power purchase agreement signed in Accra on Friday between the government and a US-based Energy Company. Balkan Energy Company (BEC), which signed the 20-year contract agreement with the Government, is expected to equip, refurbish and commission the barge as well as its associated facilities within the 90-day period at a cost of 40 million dollars.

The conversion into a combined cycle power plant would make the barge generate an extra 60 megawatts within nine months after the effective date of the agreement at a cost of 100 million dollars. This would increase the capacity of the barge to 185 megawatts. Mr. Joseph Kofi Adda, Minister of Energy and Mr Phillip David Elder, Chief Executive Officer of Balkan, signed the agreement which gives Balkan the right to start running the barge with diesel and later with gas from the West African Gas Pipe Line.

He explained that the agreement would be reviewed every five years and that Balkan would make a yearly lease payment of 10 million dollars to government from the beginning of the sixth year to the 20th. "This underscores government's commitment to see the power problem solved and allow normal operations of business in the country," the Minister said.

Subject to concluded tooling fee and supply agreements with government and gas suppliers, Balkan would within three years invest in infrastructure to ensure that the gas was supplied through the West African Gas Pipeline, Tano Basin or other sources. In addition, it would invest and bring two more combined cycle barge-mounted systems of 185MW each within three years of executing the agreement and increase the generation capa city at Effasu where the Barge is stationed, to approximately 555MW.

Mr Elder expressed his company's delight to bring private investment into Ghana not only for the short-term but also the long-term power need of the country.

"With the support of government we will work to expand the facility and make it more efficient," he said. The Osagyefo Barge has never been operated due to non-availability of fuel. The reason being that the Tano Fields, originally projected as source of fuel supply for the barge, is yet to be developed and plans to use alternative sources seem to have delayed.

When government brought it from Italy, the barge was moored at the Naval Base in Sekondi in October 2002. Later on March 7 2005, it moved to its present permanent site at Effasu-Mangyea.